HBM Nigeria Plc has posted a pre-tax profit of N317.73 billion for the first half of 2026, a 59.08% increase from N199.74 billion in the same period last year, according to its unaudited financial statements released on July 28, 2026. The company also declared an interim dividend of N16 per ordinary share, subject to withholding tax, payable electronically on August 17, 2026 to shareholders on record as of August 12, 2026.
Strong Revenue Growth and Profitability
Revenue for the six months ended June 30, 2026 rose 31.23% year-on-year to N678.41 billion from N516.977 billion. Gross profit jumped 42.62% to N421.815 billion, while operating profit surged 51.32% to N290.94 billion. Profit after tax climbed 57.03% to N208.347 billion, and earnings per share improved 56.92% to N12.93 from N8.24. The second quarter alone contributed N168.61 billion in profit, up 13.07% from Q1 2026 and 33.16% higher than Q2 2025.
Drivers of Performance
The stellar results were propelled by the cement business, which generated N661.54 billion in revenue, representing 97.52% of total group revenue. This segment grew 31.16% from N504.36 billion in H1 2025. Aggregates and concrete revenue increased 34.81% to N16.23 billion (2.39% of total), while other products contributed N646.82 million (0.10%). Production costs rose at a slower pace of 16% to N256.60 billion, enabling gross margin expansion from 57.21% to 62.18%. Variable production costs accounted for 66.37% of total production costs, increasing 16.18% to N170.30 billion.
Net finance income provided an additional boost, soaring to N26.79 billion from N7.47 billion. Finance income grew 172.71% to N27.95 billion, mainly from interest on short-term deposits and current accounts (N27.01 billion vs N7.18 billion). Net foreign exchange gains declined 69.37% to N940.29 million. Finance costs fell 58.32% to N1.2 billion due to lower lease interest, bank charges, and reduced total debt.
Balance Sheet Strength
Total assets increased 8.09% to N1.31 trillion, driven by a 26.38% rise in property, plant and equipment to N556.89 billion. Total liabilities declined 2.72% to N500.04 billion, while shareholders’ funds grew 16.10% to N805.70 billion, supported by a 22.12% increase in retained earnings. Cash and cash equivalents, however, fell 14.80% to N330.64 billion from N388.07 billion at year-end 2025.
Operational Highlights
Selling and distribution costs rose 10.55% to N85.57 billion, while administrative expenses increased 47.91% to N45.45 billion. Depreciation climbed 33.70% to N21.78 billion, consistent with expanded property, plant and equipment. Despite higher overheads, operating profit growth outpaced expense increases.
Market Reaction
Following the announcement, HBM Nigeria’s shares closed at N365.00 on July 27, 2026, up 4.4% from N349.50. The stock has gained 171% year-to-date and 17.74% month-to-date, reflecting investor confidence in the company's performance and dividend declaration.
